Semtech drops after lowering CopperEdge forecasts
10/02/2025 10:08
** Shares of Semiconductor supplier Semtech SMTC.O slumps
25.1% premarket to $40.81
** Co's stock lost nearly 10% on Friday
** SMTC in its 8-K filing says FY26 net sales from its
CopperEdge products expected to be lower than previous forecasts
of $50 mln
** SMTC lowers forecasts due to rack architecture changes,
with no expected ramp-up over the course of fiscal year 2026
** Brokerage Piper Sandler cuts PT to $55 from $75 after the
filing, says "we recognize a setback here"
** "Primary reason for our estimate reduction is due to a
change of rack architecture at Nvidia, which reduces our
forecast around SMTC's active copper cable (ACC) opportunity" -
Piper Sandler
** SMTC gained 182.3% in 2024 and is down 11.9% YTD
(Reporting by Pranav Kashyap in Bangalore)
((Pranav.Kashyap@thomsonreuters.com; +919886482111;))